Duty-Free Hong Kong New Asian Wine Hub

When the Hong Kong government abolished all taxes on wine and beer in February, it declared its intention to promote the city as Asia's center for trading, storing and shipping wine. Yesterday's auction, first in a decade, was the kick off.
 
The symbolic wine auction by the auction house Bonhams, resulted in around $1.5 million worth of top vintages including cases of Chateau Petrus from 1990 and 2000 which went for $57,240 each, along with six magnums of 1982 Chateau Lafite Rothschild which fetched $36,151.

About 96% of the 246 lots offered to the people were sold off, according to the auctioneers. Most of the bidders were locals.

Bonhams were pleased with the results and said that this former British colony had bright prospects to become the Asian wine hub, especially because of its proximity to the huge Chinese market next door.

Hong Kong may join the massive US and London market in the years to come, as a major global player in wine auctions.

In a world of stagnating market, the increase in demand by Asia-especially Japan, China and Hong Kong would help the fine wine market get out of the existing economic slump. It is working as a sort of buffer.

New York wine merchant Acker Merrall & Condit Co. is holding the next auction here with 1,000 lots of wines, worth about $6 million, on May 31.

Hong Kong and China have a significant number of fine collectors who usually buy and cellar their fine wines in Europe or the US. However, warehousing and proper cellaring is still a challenge.

The fine wine market is practically non-existent in India though a small number do buy and cellar their wines abroad. High duties make such auctions impractical.